% GAUTIER LE BIHAN - 2020
% Replication files for "Shocks vs Menu Costs: Patterns of Price Rigidity in an Estimated Multi-Sector Menu-Cost Model?" Review of Economics and Statistics
%
% This code produces Figure Q

clear;
tic
cd ..\..\IRF\VC_alvarez_lam
load IRF_rhob
x=sum(IRF_rhob')*100;
load stat_rhob
y=stat_rhob(:,9)./stat_rhob(:,5);
y=y';
figure(1);
scatter(y(y<40 & x<1.4), x(y<40 & x<1.4));
hold on;
cd ..\..\IRF\VC_alvarez_mu
load IRF_rho
x1=sum(IRF_rho')*100;
load stat_rho
y1=stat_rho(:,9)./stat_rho(:,5)
y1=y1';
scatter(y1(y1<40 & x1<1.4), x1(y1<40 & x1<1.4));
hold off;

hold on
cd ..\..\IRF\VC_alvarez_sig
load IRF_rho
x2=sum(IRF_rho')*100;
load stat_rho
y2=stat_rho(:,9)./stat_rho(:,5)
y2=y2';
scatter(y2(y2<40 & x2<1.4), x2(y2<40 & x2<1.4));
hold off;
axis([5 40 0 1.3])
 xlabel('Kur/Freq') % x-axis label
ylabel('Cum. IRF (x100)') % y-axis label
legend('\lambda', '\mu', '\sigma','Location','northwest','Orientation','horizontal');
